Robin Li: accelerating the commercial liquidity of short video business

category:Internet
 Robin Li: accelerating the commercial liquidity of short video business


The following is the main content of the question and answer link of the analyst: Bank of America Merrill Lynch analyst EddieLeung: can you share the performance of the first quarter of the companys information flow advertising products? From the perspective of the whole industry, what is the pricing of advertising products? For example, CPM (effective thousands of display prices). And the evaluation of the business potential of the entire information flow advertising industry? Lu Qi: first of all, information stream advertising is an extension of the Baidu search engine advertising, so we can make full use of the existing platform technology and the user base. At the same time, information flow advertising also brings new opportunities for brand marketing. Because product user participation has gradually changed from a closed mode to an open mode, our advertising products can have more opportunities for development. Specifically, we are constantly enriching our advertising products. For example, the open screen advertising in the Chinese market. A series of exquisite and impressive image ads will be launched when users open Baidu web pages. The effect of this product is very good at present. GD advertising, a form of information flow advertising, can effectively help advertisers achieve promotional goals. More importantly, many advertising products, such as dynamic advertising, click charging advertising and plug-in advertising, can be combined with information flow advertising products. In the future, our advertising products will usher in long-term sustainable development. The second question is about the overall trend of CPM (effective thousands of display prices). I want to talk about the nature of advertising products first, and the effect of advertising needs to be measured by the rewards it brings. Only by increasing the conversion rate of users can we upgrade the price of thousands of web pages in a certain period. Citigroup analyst AliciaYap: can you give a detailed introduction to the fortified learning function of Phoenix Nest search marketing platform? On the vertical level, which industry will benefit from it? In addition to the automotive industry, which vertical industries can benefit from the companys CPC (pay per click advertising)? In the last quarter, how did these new technologies affect the potential of corporate earnings realisation? Lu Qi: first of all, lets talk about the new infrastructure of the company. Machine learning has a strong impact on many industries in the whole industry, and reinforcement learning is very similar. Its most important feature is that it does not need to read the sample data, but directly gets the data from the actual activity and learns it, such as the number of browse, the amount of clicks, and the conversion rate. Reinforcement learning can achieve more target data than machine learning, so it is more efficient to enhance economic returns and advertising quality. Third, reinforcement learning is a kind of so-called online learning, which means that no online training is needed before transferring to online, because this kind of learning is more efficient. For example, as we all know, AlphaGo applies reinforcement learning. In addition, these technologies are widely used in other applications. Applying reinforcement learning to advertising products will become a new competitive advantage for us in the coming period and will bring strong sustainable development for the company. The second question is about OCPC (optimized Click to pay advertising). The essence of optimizing Click to pay advertising is to increase the efficiency of advertising expenditure by maximizing conversion rate, so it is almost suitable for all vertical industries. We will then optimize the click to pay advertising products to apply to more industries, including search advertising and information flow advertising. Yu Zhengjun: let me add a concrete example. For many industry advertisers, their purpose is very clear. For example, for an application developer, he wants to know the cost of single click, for example, how much each user costs when clicking or downloading APP. In the automotive industry, advertisers want to know Costperlead, that is, according to the advertisement click to guide users to the designated number of service providers. Baidus user base in the industry can be transformed into a powerful artificial intelligence computing power, and then based on these capabilities and the database that it owns to predict costs and benefits, thus helping advertisers to reduce investment uncertainty while allowing them to pay more fees. Because we have a long history of operation, we have a huge database that can help advertisers optimize the pay per click advertising revenue. Morgan Stanley analyst GraceChen: my question is about Baidus research and development process of autopilot. We know that the company is still in its early stage so far, what important progress has been made in the past year? In the future, as domestic competition becomes more and more intense, what important competitive advantages can the company have in this field? Lu Qi: first of all, in the past year, a more important progress of the company in the field of driverless cars is the upgrading of platform capability. From the very beginning of Apollo 1 to the current Apollo 2.5, our platform technology and its continuous improvement are increasing. The second is the ecosystem. Our developers community, partners, institutions and governments are strongly supporting our platform. Third, and most importantly, our partners L3 and L4 driverless cars are rapidly becoming commercialized and commercialized. In the future, we will continue to improve our technological capability, and more importantly, speed up the realization of auto business. This year, we will launch a L4 mini bus with our partners. In the next few years, we will also launch L3 commercial cars with other partners. As long as we continue to improve our technical capabilities, Apollo platform technology will continue to improve and become our competitive advantage. In the previous report, Apollo now has a very healthy business model. Barclay, an analyst at Barclay: about the calculation, if the Iqiyi business is not included, Baidus core business will have a higher growth rate in the second quarter, and ask management to analyze the possible reasons. Since the beginning of April, the government has issued new media content reviews, and your competitors, such as headlines and other news applications, have been banned from downloads for several weeks in application stores. So, will Baidu benefit from it? For example, a competitors advertiser. In the last quarter, Baidu was growing substantially in its business growth rate, without a downward trend that was previously predicted, so will management still have a bad view of the growth after the company? Yu Zhengjun: Iqiyi is an inseparable part of the companys business, so we cant separate it from it. However, according to our forecast, the growth in the second quarter of this year will be similar to that in the first quarter. The second question is about the censorship of media content. The good user experience is Baidus positioning to the product, and is committed to the long-term use of the user. Therefore, it is our aim to provide the users with high quality and legal media content. In addition, Baidu has been committed to providing users with diverse content, such as artificial intelligence, to bring high-quality experience to users. Therefore, we have an unshaken position in this field. The headline event has not narrowed the market, and we have been using technology such as artificial intelligence to seize the opportunity to combine the big data with our advertising products to bring a more efficient experience to the users. After that, we will have more relevant brands and will have the ability to establish key account accounts. Robin Li: To sum up, the growth of the last quarter profit is mainly due to the companys continuous innovation in the technology of users and customers, so the content regulatory provisions issued by the government will not have much impact on us. Yu Zhengjun: the last question is about the rate of profit. Last year was a year of corporate transformation. Our strategy became clearer and clearer: to enter the automotive field and develop AI technology. At present, all of Baidus business is based on AI technology, whether search engine, information flow advertisement or autopilot. We are constantly looking for opportunities in the field of technological innovation, so as to achieve profit growth, though raising total revenue may be even more urgent now. Goldman Sachs analyst PiyushMubayi: can executives compare driverless commercial vehicles and passenger cars? Which one may be listed first? And the comparison of the commercial liquidity of the two vehicles. Lu Qi: first of all, the commercial autopilot we mentioned refers to the passenger car. L4 autopilot mini bus is a six seat passenger car that will be launched around the end of this year. Some other auto makers will finish the L3 autopilot next year or next, although it means that the driver still needs to sit on the drivers seat, but marks a significant increase in unmanned technical ability. So the commercial automatic driving technology we mentioned just now refers to the passenger car, rather than the commercial vehicle used in the commercial logistics field. Second, the commercial opportunities for the technology. Although some customers are willing to pay for them, driverless cars need to be driven in relatively low speed and controllable environments. Six passenger cars are a good example. If a vehicle is arranged in an industrial park or scenic spot, only a low-speed controlled environment can ensure maximum safety. Thats the way we will release the L3 driverless car next year. Third, the applicability of driverless technology in commercial vehicles and passenger cars. Due to the needs of partners, Baidu has more and more commercial vehicle customers, such as commercial logistics vehicles, trucks and so on. In these areas, vehicle speed is lower and more controllable, so there are more and more opportunities for development. Apollo has more and more opportunities in these areas. Finally, theres a business model. Apollos platform is free to open to our partners, but at the same time, we also need some key services. One of them is the map. The map I am talking about is different from the map we usually use, but the map with high accuracy. Our current business models will be very beneficial to current customers and future customers. Robin Li: short video is a very important business unit for Baidu applications. The content occupying ratio and the growth of user penetration in the information flow business are very rapid. It almost occupies half of our total business, and the demand of users is very large. At present, we are accelerating the commercial liquidity of short video business, and we expect that its profitability will be considerable in the future. Lu Qi: second, first of all, the human-machine interaction platform or the voice interaction network has great commercial value and opportunity. We have invested and developed this kind of equipment, hoping to drive user volume and user stickiness, so that Baidu can improve the establishment of DuerOS platform. Among these devices, Baidu has independently developed and manufactured the first party products, as well as third party products manufactured by partners. However, at home we call it second party products, that is to say, the cooperation between us and the manufacturer is very close. The brand, user experience, operation, design and manufacturing of the whole product are done together by both sides. We are full of expectations for the future of this product. This year, the DuerOS platform will bring more new products: an intelligent sound box with image display capabilities, which we think is most likely to be the control center for future smart home appliances. Because this speaker has a display screen, it makes it easier to manipulate. In addition to playing music and completing tasks according to instructions, the device can also calculate family consumption, assist family members, and eventually learn new skills, such as new skills and medical care. So the future of this device is enormous. We also look forward to the integration of more fourth party applications. Besides the screen function, this smart speaker can also become an important communication tool in larger space, and transmit important information to the communicators. We are very much looking forward to developing the fourth party hardware devices in the future, and these devices can drive the healthy development of the entire ecosystem. Finally, the overall revenue. The revenue creation of the Baidu platform can be divided into several parts: first, this kind of device provides Baidu with entry points into many fields, such as information, services and content. Advertising is a natural thing. In fact, we have begun to cooperate with some manufacturers in the initial advertising of DuerOS. Second, DuerOS has its own platform, which means that we can make a profit by means of authorization and commission. Of course, this is a long-term goal. In the short term, we are still more concerned about the quality of the product and the improvement of the user experience. Credit Suisse analyst ThomasCheung: how does management view the increasingly fierce competition in the human-machine interaction platform and the autopilot market? And whether it will invest more because of competition. Lu Qi: from the perspective of the whole industry, we believe that Baidu has a strong and unshaken position in the field of pilotless China, and also has considerable commercial liquidity. There are two main reasons for our competitive advantage. One is that we have entered the unmanned market earlier than the other rivals. We have had four years of research and development experience in this field, so we are stronger than other companies. Second, we aim to build an open ecosystem of information. Therefore, almost all of the original manufacturers are willing to apply our technology, and the government is willing to give us strong support. For example, the Chinese government has designated the Apollo platform as the first four open platforms for automatic driving. Therefore, we think Baidu has a very high position in the field of automatic driving. Despite the increasingly fierce competition in the human-machine interaction equipment industry, Baidu is still in a very important position. The first is the strong technical strength of Baidu: the integration of voice recognition, natural language understanding and Baidus huge knowledge base, which was derived from the accumulation of knowledge in Baidu over the past eighteen years. A powerful knowledge map is needed to understand the users meaning quickly. If only the ability of speech recognition is not enough to understand users commands, second, Baidu search engine provides the foundation for the development of Internet services. For example, smart speakers with display devices, Iqiyi, Baidu search and Baidu encyclopedia can provide resources for improving the knowledge reserve of the device. The integration of Baidu software and hardware provides a competitive advantage for the companys content service unit. However, the most important thing is the speed of innovation. We are the first company to publish smart speakers with display. The products have some very high user experience, which greatly satisfy the needs of consumers. As long as we continue to accelerate technological innovation and make full use of existing knowledge and data, we firmly believe that Baidu can play an important role in the fierce competition. Deutsche bank analyst HanjunKing: how does the company achieve business realisation in the automatic driving business? Which business can achieve business realisation faster than smart speakers and driverless cars? Lu Qi: the first one is about commercial liquidation of autopilot. Its a very important part of our business model. Every week when we talk with the original manufacturers, we will find many cooperation scenarios that our technology can be applied to. For example, this weeks Beijing auto show, as a car manufacturer, discussed the possibility of future cooperation with other manufacturers during the exhibition. The ACU Apollo computing unit mentioned earlier has a very high commercial value in terms of long-term development. At the same time as Apollo 2.5, we also mentioned a lot of other service products, including security proposals, because there are a lot of security risks in unmanned vehicles in the coming time. This is the way in which Apollo realized business realisation in the long run. The deployment time of AI devices is mainly determined by the implementation of terminal control devices. In the United States, Amazons Echo platform has been developing rapidly because of its strong promotion to terminal control devices. In China, there will be a similar change, and Baidu is pushing the terminal as a head to push the screen - based artificial sound box to the market. Because of the needs and preferences of Chinese consumers, Baidu has added screens to this product, which is different from that of the United States. We firmly believe that we will become one of the strongest players in the industry in the future. Once the AI speaker with the screen is accepted, then the whole man-machine intelligent interaction platform will develop rapidly. As an entry point, the initial platform will also provide advertising opportunities to provide business opportunities for Baidu AI devices. Paget analyst KarenChen: what is the profit of advertising in the last quarter? What are the possible trends of the next quarter after this year? Will there be a 20% increase in the previous goal? Yu Zhengjun: the business grew slightly in the first quarter compared with the fourth quarter of last year. Because the advertising revenue in the fourth quarter to the first quarter usually decreases slightly, so the small increase in last quarter is not easy. From the first quarter to the second quarter, advertising revenue will usually be seasonally affected, and there will be a substantial increase. (Qin Xin) source: NetEase science and technology report editor: Bai Xin _NT4464 The deployment time of AI devices is mainly determined by the implementation of terminal control devices. In the United States, Amazons Echo platform has been developing rapidly because of its strong promotion to terminal control devices. In China, there will be a similar change, and Baidu is pushing the terminal as a head to push the screen - based artificial sound box to the market. Because of the needs and preferences of Chinese consumers, Baidu has added screens to this product, which is different from that of the United States. We firmly believe that we will become one of the strongest players in the industry in the future. Once the AI speaker with the screen is accepted, then the whole man-machine intelligent interaction platform will develop rapidly. As an entry point, the initial platform will also provide advertising opportunities to provide business opportunities for Baidu AI devices. Paget analyst KarenChen: what is the profit of advertising in the last quarter? What are the possible trends of the next quarter after this year? Will there be a 20% increase in the previous goal? Yu Zhengjun: the business grew slightly in the first quarter compared with the fourth quarter of last year. Because the advertising revenue in the fourth quarter to the first quarter usually decreases slightly, so the small increase in last quarter is not easy. From the first quarter to the second quarter, advertising revenue will usually be seasonally affected, and there will be a substantial increase. (Qin Xin)